USD/JPY struggles near multi-week lows, below 113.00 mark


  • USD/JPY witnessed selling for the fourth successive day on Tuesday amid sustained USD selling.
  • The cautious market mood underpinned the safe-haven JPY and also contributed to the decline.
  • Acceptance below the 113.00 round figure might have already set the stage for additional losses.

The USD/JPY pair maintained its offered tone through the mid-European session and was seen trading around the 112.90-85 region, just a few pips above four-week lows touched earlier this Tuesday.

A combination of factors dragged the USD/JPY pair lower for the fourth successive day and reaffirmed the overnight bearish break below the 113.30-25 strong horizontal support. The cautious market mood underpinned the safe-haven Japanese yen and exerted some pressure on the major amid the prevalent US dollar selling bias.

In fact, the greenback prolonged its recent pullback from YTD tops touched in reaction to the upbeat NFP report on Friday and was pressured by the Fed's dovish outlook. It is worth recalling that the US central bank stuck to its transitory inflation narrative and indicated that it was in no rush to raise borrowing costs.

Apart from this, a fresh leg down in the US Treasury bond yields further weighed on the greenback and contributed to the USD/JPY pair's decline to the lowest level since October 11. The downfall could also be attributed to technical selling below the 113.00 mark, which might have already set the stage for further losses.

That said, slightly oversold RSI on hourly charts held back traders from placing fresh bearish bets and helped limit losses. Traders now look forward to the release of the US Producer Price Index (PPI). This, along with Fed Chair Jerome Powell's remarks will influence the USD and provide some impetus to the USD/JPY pair.

Technical levels to watch

USD/JPY

Overview
Today last price 112.9
Today Daily Change -0.33
Today Daily Change % -0.29
Today daily open 113.23
 
Trends
Daily SMA20 113.84
Daily SMA50 111.85
Daily SMA100 110.99
Daily SMA200 109.71
 
Levels
Previous Daily High 113.67
Previous Daily Low 113.08
Previous Weekly High 114.44
Previous Weekly Low 113.3
Previous Monthly High 114.7
Previous Monthly Low 110.82
Daily Fibonacci 38.2% 113.3
Daily Fibonacci 61.8% 113.44
Daily Pivot Point S1 112.98
Daily Pivot Point S2 112.74
Daily Pivot Point S3 112.4
Daily Pivot Point R1 113.57
Daily Pivot Point R2 113.91
Daily Pivot Point R3 114.16

 

 

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